What is daily hospital cash in Health Insurance

Daily Hospital Cash


There will always be a lot of costs that are not covered by your Health Insurance, no matter how expensive it is. This ultimately increases certain financial burdens that no insurance will cover. Hence, you will be glad to know more about daily hospital cash.

What is daily hospital cash insurance?

Daily hospital cash covers you with a fixed amount of money for each day of hospitalisation. 

This payment can be utilised for different expenses during your hospital stay. Also, this will be beneficial for the insured to cover any other out-of-pocket expenses like food, petrol, for the attendant, etc. A plan which seeks to supplement your normal Health Insurance coverage, a hospital daily cash plan is a valuable add-on benefit to your existing Health Insurance.

Health Insurance Plans Starts at Rs.14/day*

This benefit is paid directly to the policyholder and can be used to cover expenses such as transportation, lodging, and other out-of-pocket costs associated with a hospital stay.

This type of coverage is intended to ease the financial burden of hospitalization, by providing additional funds to policyholders. It’s important to note that daily hospital cash is not a replacement for Health Insurance, but rather an additional benefit that can help to cover additional expenses while someone is hospitalised.

Why is daily hospital cash insurance important?

This policy enhances your existing health policy and offers good financial assistance during difficult times.

Benefits of daily hospital cash insurance

Valid for multiple days: The benefit of daily cash is valid for up to dates mentioned in the policy documents. However, this time period differs from one insurer to another. Similarly, the minimum number of days of hospitalisation to avail the benefits of daily cash insurance also depends on the insurance company.

Eligible to use the excess amount: If your daily expenses are less than the assigned amount under your hospital cash insurance, still you will receive the entire amount and you could use it according to your requirements.

Tax benefits: You can deduct the cost premium of your Health Insurance under Section 80D. Given that regular citizens are eligible for a deduction of up to Rs. 25000, it can be used as a medium for tax planning.

Each insurance company provides varied benefits in its policy. Refer to the company’s terms and conditions to know more.

Coverage of daily hospital cash insurance

Daily Hospital cash insurance usually ranges from Rs 500 to Rs 6,000 but the actual amount will vary from one insurer to another. It is suggested to check the daily hospital cash plan limit in the policy at the time of buying the hospital cash insurance.

How to choose a daily hospital cash insurance policy?

You should consider the plan benefits before you consider the price of the plan. Choose a policy that meets your requirements, and compare plans on benefits and costs that cater to your needs.

Talk to an approved agent or the insurance company about the coverage, documents needed, whether it is already covered under any existing policy and other important features. You can compare various Health Insurance company policies online as the coverage and plans vary from company to company. Read the terms and conditions carefully before buying a policy.


Daily hospital cash insurance is undoubtedly a safety net during difficult times when those extra expenses weigh heavily on the pocket. If you already have a policy, you can include this extra benefit in your plan or you can buy a separate policy for Hospital Cash. Check Star Health Insurance for information regarding the policy.


The Information including but not limited to text, graphics, images and other material contained on this blog are intended for education and awareness only. No material on this blog is intended to be a substitute for professional medical help including diagnosis or treatment. It is always advisable to consult medical professional before relying on the content. Neither the Author nor Star Health and Allied Insurance Co. Ltd accepts any responsibility for any potential risk to any visitor/reader.

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